Oracle disappointed. Crypto companies are declining along with bitcoin. Premarket overview
↘️ Oracle (ORCL) -11%. One of the largest software developers and a supplier of server equipment delivered a mixed report. The company plans to increase spending on data centers by $15b.
↗️ Planet Labs (PL) +18%. The company is engaged in space imaging of Earth. Planet Labs broke even, while Wall Street expected a loss.
↗️ Gemini Space Station (GEMI) +16%. The cryptocurrency exchange founded by Cameron and Tyler Winklevoss received a license and is entering the prediction markets.
↘️ Strategy (MSTR) -2%, Coinbase (COIN) -2%. Bitcoin once again approached the $90,000 level.
↗️ Synopsys (SNPS) +1%. The report is better than expected, and the forecast for the first quarter also exceeded the consensus.
↘️ Manchester United (MANU) -5%. Revenue was £140.3m, which is below expectations of £141.05m and 2% lower than the result of £143.1m for the same period last year. The club recorded an adjusted loss per share of £1.48, which is significantly worse than break-even forecasts. Commercial revenue fell 1.3%, broadcasting revenue decreased 4.5%, and matchday revenue dropped 1.1% compared with the first quarter of 2025.
↗️ Ciena Corporation (CIEN) +8%. The supplier of networking equipment reported significantly better than expected results thanks to high demand from cloud providers and growing opportunities in AI infrastructure. The annual revenue forecast is better than estimates: $5.7–$6.1b vs $5.3b.
↘️ Oxford Industries (OXM) -17%. The company published lowered forecasts for the fourth quarter and fiscal year 2025.
DANCHIMA MEDIA · Channel with trading ideas
Trump may legalize marijuana. Broadcom will benefit from the OpenAI contract only in 2027. Premarket overview
🚀 Quanex Building Products (NX) +22%. The building products manufacturer exceeded earnings expectations despite difficult macroeconomic conditions.
🚀 Cannabis companies Canopy Growth (CGC) and Tilray (TLRY) rose more than 20%. The Washington Post writes that Donald Trump is considering removing restrictions on marijuana by executive order.
↗️ Lululemon Athletica (LULU) +8%. The athletic apparel retailer announced the departure of CEO Calvin McDonald and raised its annual profit forecast.
↘️ Broadcom (AVGO) -5%. Concerns about weak margins and the absence of immediate revenue from OpenAI overshadowed strong quarterly results. The server-chip maker gave an optimistic forecast for the current quarter, promising that AI-chip revenue will double year over year. The order backlog for them over the next 18 months will total $73b.
Shares initially rose 3% but reversed when CEO Hock Tan said that revenue from chips not related to AI will decline sequentially this quarter due to weak demand. At the same time, Broadcom’s gross-profit margin from the AI segment is lower than from other segments. Tan also does not expect the OpenAI contract to start generating revenue in 2026. The deal will bring the majority of revenue in 2027, 2028, and 2029.
🚀 Mitek Systems (MITK) +22%. The report was significantly above expectations on earnings per share and revenue. The company develops software for identity verification and fraud prevention. Mitek’s solutions are embedded into mobile applications and web browsers.
↗️ Rh (RH) +2%. The luxury furniture retailer reported earnings per share below consensus, but revenue slightly above expectations. The forecast is better than estimates. CEO Gary Friedman said the company is showing industry-leading growth: revenue +9% for the quarter and +18% over two years despite the worst housing market in almost 50 years and the impact of tariffs.
